Point of View

The Internet of Everything for Cities

Connecting People, Process, Data, and Things To Improve
the Livability of Cities and Communities

Given these trends,

understanding where we
are in the evolution of the
Internet is critical to future
city-planning processes.

Shane Mitchell
Nicola Villa
Martin Stewart-Weeks
Anne Lange

Introduction
As microcosms of the Internet of Everything (IoE), cities stand to benefit the
most from connecting people, process, data, and things. Working with Cisco,
in partnership with global and local innovators, cities are developing IoE-related
projects, platforms, and implementations. Importantly, the IoE ambitions and scope
are designed to respond to the need for real-time, context-specific information
intelligence and analytics to address specific local imperatives. The lessons and
framework from many pilots can provide other cities with a pattern language for
progressing strategies, and for developing their own city initiatives.

Cities: Fertile Ground for Realizing IoE Value

Over the past few years, the definition of Smart Cities has evolved to mean many
things to many people. Yet, one thing remains constant: part of being smart
is utilizing information and communications technology (ICT) and the Internet to
address urban challenges.
The number of urban residents is growing by nearly 60 million every year. In
addition, more than 60 percent of the worlds population will be living in cities by
2050. As a result, people occupying just 2 percent of the worlds land will consume
about three-quarters of its resources. Moreover, more than 100 cities of 1 million
people will be built in the next 10 years.1
Todays cities face a variety of challenges, including job creation, economic growth,
environmental sustainability, and social resilience. Given these trends, understanding
where we are in the evolution of the Internet is critical to future city-planning
processes.
In terms of phases or eras, Cisco believes that many organizations are currently
experiencing the Internet of Things (IoT), the networked connection of physical
objects. As things add capabilities like context awareness, increased processing

Page 1 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

City leadership must

understand how the
components of IoE
people, process, data,
and things play specific
roles, and work together, to
enable our future cities and
communities.

power, and energy independence, and as more people and new types of
information are connected, IoT becomes an Internet of Everything a network
of networks where billions or even trillions of connections create unprecedented
opportunities as well as new risks.
In fact, we are seeing the emergence of a new imperative from public leaders and
industries. Digital urbanism2 is rapidly becoming a central pillar for urban planners,
architects, developers, and transportation providers, as well as in public service
provision.
From a public sector leadership perspective, cities can be viewed as microcosms
of the interconnected networks that make up IoE. In fact, cities serve as fertile
ground for realizing IoE value.
For this to happen, however, city leadership must understand how the components
of IoE people, process, data, and things play specific roles, and work together,
to enable our future cities and communities (see Figure 1).
Figure 1.

IoE Brings Together People, Process, Data, and Things To Make

Networked Connections More Relevant and Valuable.

Source: Cisco, 2012

People. In IoE, people will be able to connect to the Internet in innumerable

ways. Today, most people connect to the Internet through their use of devices
(such as PCs, tablets, TVs, and smartphones) and social networks (such as
Facebook, Twitter, LinkedIn, and Pinterest). As the Internet evolves toward IoE,
we will be connected in more relevant and valuable ways. For example, in the
future, people will be able to swallow a pill that senses and reports the health of
their digestive tract to a doctor over a secure Internet connection. In addition,
sensors placed on the skin or sewn into clothing will provide information about
a persons vital signs. According to Gartner, people themselves will become
nodes on the Internet, with both static information and a constantly emitting
activity system.3
Page 2 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

The key is creative use of

new technologies that are
emerging in the Internet of
Everything economy, over
and above the growth of
current data sources.

Data. With IoT, devices typically gather data and stream it over the Internet to
a central source, where it is analyzed and processed. As the capabilities of
things connected to the Internet continue to advance, they will become more
intelligent by combining data into more useful information. Rather than just
reporting raw data, connected things will soon send higher-level information
back to machines, computers, and people for further evaluation and decision
making. This transformation from data to information in IoE is important because
it will allow us to make faster, more intelligent decisions, as well as control our
environment more effectively.
Things. This group is made up of physical items such as sensors, consumer
devices, and enterprise assets that are connected to both the Internet and
each other. In IoE, these things will sense more data, become context-aware,
and provide more experiential information to help people and machines make
more relevant and valuable decisions. Examples of things in IoE include smart
sensors built into structures like bridges, and disposable sensors that will be
placed on everyday items such as milk cartons.
Process. Process plays an important role in how each of these entities
people, data, and things works with the others to deliver value in the
connected world of IoE. With the correct process, connections become relevant
and add value because the right information is delivered to the right person at
the right time in the most appropriate way.
In a recent study, Cisco calculated that the Internet of Everything,4 applied in 21
core use cases in five areas of business (asset utilization, employee productivity,
supply chain and logistics, customer experience, and innovation), has the potential
to deliver $14.4 trillion of value (net profits) for private-sector companies globally
between now and 2022. This Value at Stake is based on the ability to secure lower
costs and higher revenues from IoE strategies and applications. The use cases
cover areas such as smart grid, smart buildings, connected healthcare and patient
monitoring, smart factories, connected private education, connected (commercial)
ground vehicles, connected marketing and advertising, and connected gaming and
entertainment.
In a follow-up study,5 Cisco estimated that in 2013 alone, IoE will drive $613 billion
of value for private-sector companies in 12 of the worlds largest economies.
The key is creative use of new technologies that are emerging in the Internet of
Everything economy, over and above the growth of current data sources. The
value is unlocked when data is combined with changes to the people dimension
(skills, attitudes, culture, work style, and work practices) and to business processes
(especially the more pervasive use of collaboration).
The Cisco study calls out three capabilities that have the potential to enable
businesses to realize IoEs benefits as quickly as possible:
The ability to handle big data and what we might call big analytics (making
sense of the data for better judgment)

Page 3 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

The Internet of Things

is reaching a tipping
point that will make it a
sustainable paradigm for
practical applications that
can change the future of
individuals, enterprises,
and the public sector.
IDC, 2013

The capacity to connect things through sensor networks (assets and physical
objects that can start talking and sharing information)
Collaboration

Internet of Everything and the Public Sector

In more recent work, which is still underway, the Cisco Consulting Services public
sector and economics teams are beginning to measure the potential impact of IoE
on government and the public sector.
That work starts with the premise that public-sector bodies will find opportunities
similar to those already being exploited in the commercial world to create new
services and capabilities, or to improve existing ones. This is an outcome that other
market analysts are also identifying:
The Internet of Things is reaching a tipping point that will make it a sustainable
paradigm for practical applications that can change the future of individuals,
enterprises, and the public sector.6
At the regional or city level, opportunities are likely to cover things such as improved
building management, more efficient traffic flow, clever ways to provision basic
services (for example, street lighting as a service, which can be managed and
consumed to reflect more accurately changing patterns of need and demand), water
or waste management, and policing.
At a state level, the Internet of Everything holds particular promise in areas like
road infrastructure (better monitoring of pavement and bridge conditions by using
intelligent sensors and new big data computing capabilities), highway traffic
management, healthcare,7 education, and agriculture.8
The following examples show how Cisco has been working with cities over the last
decade or more to address key public and private priorities; develop new business/
governance models and public-private partnerships; and engage citizens in the
development of enhanced experiences and utility for individuals, organizations, and
society.

Amsterdam: Connected Public Lighting Within Smart Cities

Over the past decade, the city of Amsterdam, the Netherlands, has developed a
vision for collaborating, envisioning, developing, and testing numerous connected
solutions that could pave the way to a smarter, greener urban environment.9 A
number of projects were launched, beginning in 2006, as Amsterdam identified
ways to improve sustainable living/working, public spaces, and mobility. Most
recently, the city has been exploring the potential for a connected public lighting
infrastructure.
With a mutual market focus around livable connected cities, Cisco and Philips
are developing new concepts and innovations around network-enabled LED street
lighting,10 including widespread education of elected officials, city managers,
Page 4 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

A joint effort is required to

realize the vision of smart
connected cities, enabling
meaningful innovation for
years to come.

investors, and industry peers; development of new and powerful business

ecosystems; and proofs of concept with leading cities.
One engagement focused on the development of networked lighting and media
content is in the Westergasfabriek zone of Amsterdam, in partnership with Philips,
a real estate owner, and the city. This has resulted in a pilot that aims to provide
an enhanced citizen experience by applying design thinking to enhance citizen
experiences, and by developing the potential for on-demand, usage-based service
provision; revenue-generation opportunities; and public-private partnership business
models for networked civic services.
There is a huge impact from developing a connected lighting solution across this city
and globally. Artificial light is an essential element of urban environments not only
after dark, but also as part of a citys identity. It affects residents sense of safety
and social inclusion, and also influences the degree to which cities can create an
inviting environment for business and tourism.
Lighting accounts for 19 percent of all electricity consumed.
One-third of the worlds roads are still lighted by technology dating back to the
1960s.
The installation of new street lighting solutions can save up to 10 billion (U.S.
$13.1 billion) in energy per year.11
Philips estimates that a complete switch to LED technology alone can generate
savings of approximately 130 billion (U.S. $170.5 billion) an enormous sum
equivalent to the elimination of 640 medium-sized power stations globally.
Furthermore, an independent, global trial of LED technology in 12 of the worlds
largest cities found that LEDs can generate energy savings of 50 to 70 percent
with savings reaching 80 percent when LED lighting is coupled with smart controls.
The program also indicated that citizens of pilot cities prefer LED lighting, citing the
social and environmental benefits, such as a greater sense of safety and improved
visibility.
The LED lighting revolution is gaining traction: worldwide, 10 percent of new public
streetlights installed are currently LED-based a figure expected to rise to 80
percent by 2020.12
Switching to LED lighting alone, however, will not be enough to meet cities energy
consumption and cost reduction targets. Adaptive, interoperable lighting solutions
are needed to bring savings to a next level. Urban leaders now face a dilemma:
cities are complex entities where inefficiencies arise because systems are not
interconnected and have no way to talk to one another. A joint effort is required to
realize the vision of smart connected cities, enabling meaningful innovation for years
to come.
We view the future of public lighting as a transition from analog to digital, from
fluorescent lightbulbs to solid-state lighting all connected to an energy grid
through a variety of last-mile access technologies (see Figure 2).

Page 5 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

Ubiquitous wireless
connectivity, symmetrical
broadband, and IPbased utility networks
are recognized by city
authorities as enablers of
these improvements.

Figure 2.

Moving from Traditional to Intelligent Lighting Networks.

Source: Cisco Consulting Services and Philips, 2012

Additional savings can be achieved by incorporating connected controls to the

Internet. And even greater value can be derived by using the lighting network for
other connected services. Ubiquitous wireless connectivity, symmetrical broadband,
and IP-based utility networks are recognized by city authorities as enablers of these
improvements.
The city of Amsterdams broader objective is to connect all of its citizens by 2018.
Once connected, residents and businesses will be able to access rich information
and media resources, friends and colleagues, and a wealth of innovative services
that improve life across the city.

Chicago: Developing Digital Planning and Neighborhood Services

Cisco and a wide range of public and private stakeholders in the city of Chicago
are advancing a series of Smart+Connected Community initiatives.13 Objectives
include fostering smarter working practices, incubating technology innovation, and
promoting multi-stakeholder collaboration to investigate and enhance the social life
of the city.
As part of the Chicago STEM Education Initiative,14 a new Cisco STEM Lab at one
of the Citys five Early College Science Technology Engineering and Mathematics
(STEM) Schools was announced by Chicago Mayor Rahm Emanuel. Cisco is
developing this new STEM Lab and a Cisco Network Academy, which teaches
students the skills needed to build, design, and maintain, networks improving their
career prospects while filling the global demand for networking professionals.
Another agreement with the city, Cisco announced a partnership with Chicagoland
Entrepreneurial Center to build a new smart working center named 1871 that
promotes entrepreneurship and collaboration throughout the city.
Team Approach to Violence is yet another project in Chicago that is exploring the
use of everyday digital technologies to boost community resilience in this case, in
Chicagos South Side neighborhoods. The aim of the project is to use digital tools
web, mobile, SMS to enable residents, community organizations, police, and
Page 6 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

The aim of the Collaborative

is to work with a small
number of cities to
develop and prototype
innovation projects that
support city leaders, urban
planners, and community
organizations to think
differently about creating
and shaping thriving and
sustainable places.

public agencies to share information and start conversations about community safety
and tackling violent crime. In the process, the city hopes to support communities by
building trust between neighbors and local agencies, and by creating a space for a
public dialogue about crime and safety. The work is being funded by the University
of Chicagos Office of Civic Engagement, McCaffery Interests, and Cisco.
The idea for Team Approach to Violence came from a workshop about digital
technologies and community resilience that was hosted by the University of Chicago
and Cisco in 2012.15 The project is part of The Social Life of Cities Collaborative,
a wider program of work about urban social innovation and socially sustainable
communities that is run by Cisco, Social Life, and the Young Foundation. The aim of
the Collaborative is to work with a small number of cities to develop and prototype
innovation projects that support city leaders, urban planners, and community
organizations to think differently about creating and shaping thriving and sustainable
places. Cisco is currently working in Chicago and Malm (Sweden), and developing
partnerships in Asia, Australia and the United Kingdom.
In Chicago, the consortium has proposed three application concepts: Stay Safe,
Community Report, and Safe Passage. Two of these Stay Safe and Community
Report focus on synthesizing different sources of data (both user-generated
reports and data collected by police, public agencies, or community organizations)
and making this information available in a smartphone application that uses a simple
mapping interface and GPS.
Over coming months, the Team Approach to Violence team will investigate the
availability of different data sources, develop a demonstrator version of one of these
concepts, and test the demonstrator app with community-based organizations in
one or two South Side neighborhoods. The overall aim is to develop a demonstrator
that can be tested and rolled out to other South Side neighborhoods.

New York: City24/7 Platform Informs, Protects, Revitalizes

To revitalize the worlds largest cities, City24/7 a company committed to making
public communications more accessible to everyone, everywhere in collaboration
with Cisco and the City of New York has launched an interactive platform that
integrates information from open government programs, local businesses, and
citizens to provide meaningful and powerful knowledge anytime, anywhere, on any
device. In short, City24/7 delivers the information people need to know, where and
when it helps them most.
Located at bus stops, train stations, major entryways, shopping malls, and sports
facilities, City24/7 Smart Screens incorporate touch, voice, and audio technology
to deliver a wide array of hyper-local (about two square city blocks) information,
services, and offerings in real time. The Smart Screens can also be accessed via
Wi-Fi on nearby smartphones, tablets, and laptop computers.

Page 7 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

In effect, City24/7 becomes

a virtuous cycle as more
citizens use and gain value
from the system, cities and
businesses can offer even
better services, which, in
turn, increase peoples
involvement.

The overarching goals of the City24/7 Smart Screens are to:

Inform by instantly connecting people with information that is relevant to their
immediate proximity
Protect by giving local police and fire departments a citywide sensing,
communications, and response network that can direct needed personnel and
resources exactly where and when they are needed
Revitalize by increasing levels of commerce, investment, and tourism
Figure 3.

City24/7 Smart Screen Locations.

Source: Cisco Consulting Services and City24/7, 2012

To develop a solution that works for the public and private sectors, as well as for
citizens, City24/7 needed to overcome the obstacle of monetization a key barrier
that has prevented the success of other public-private partnerships with similar
goals. City24/7 worked with numerous organizations during the development and
testing phases, including the New York City Department of Information Technology
& Telecommunications, Amtrak, New Jersey Transit, New York City Health and
Hospitals Corporation, the New York Mets, the United States Postal Service, the
Javits Center, the New York City Department of Parks & Recreation, the New York
City Department of Transportation, and New York University. It became clear to
City24/7 and its main development partners, Cisco and the City of New York, that
it was critical to leverage the network in combination with ubiquitous platform
support and powerful analytics to gather and distribute valuable insights and data
to all of the programs participants.
As the network grows by deploying more Smart Screens, the amount of insights
and data also grows, delivering even more value to cities, businesses, and citizens.
In effect, City24/7 becomes a virtuous cycle as more citizens use and gain value
from the system, cities and businesses can offer even better services, which, in
turn, increase peoples involvement.
Once the Smart Screens have reached critical mass in New York City, City24/7
will start the second phase, which includes expansion to several major cities in the
United States and around the world.
Page 8 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

When the implementation

of the Busan u-City is
complete, it will usher in a
new era in urban mobility
around the city, with
education, medical service,
and public welfare all
benefiting from the creation
of a smart community
environment. This is
Busans chance to cement
its reputation as a worldclass city that the whole
world can learn from, in its
simultaneous achievements
of local economic growth
and green growth.
Young-Sik Kim
Director General, Planning and
Financing
Busan Metropolitan City

Busan: Transforming Economic Sustainability with Public Cloud

Busan, South Korea, faces challenges similar to those of other large, industrial cities.
A primary imperative for Busan is creating job opportunities for its 60,000 annual
university graduates and retaining a high-quality workforce.
The Busan Metropolitan Government recognized the potential for growing its
economic base through the use of ICT. By connecting citizens, educational
institutions, government agencies, and industry, the city could drive sustainable
urban development while providing citizens with easy access to city services.
A 10GB broadband infrastructure, the Busan Information Highway, was already
deployed and linked 319 public institutions. This infrastructure gave the Busan
government a strong foundation for expansion. For assistance, Busan turned to
Cisco and the Cisco Smart+Connected Communities solutions to develop a cloud
infrastructure strategy.16
Today the cloud connects the Busan Metropolitan Government, the Busan Mobile
Application Center (BMAC), and five local universities. BMAC offers physical
workspaces, such as project and meeting rooms, shared application development,
cloud platforms for Windows and Mac OS operating systems, an applications library,
a consulting center for start-ups and small-office/home-office professionals, testing
tools, smart devices, application programming interfaces for access to municipal
data, an application developers forum, and marketing resources.
The shared platform as a service (PaaS) provides developers with convenient
access to municipal data from the citys geographic information and intelligent
transportation systems. Using this data, developers can create innovative
applications that help improve city operations, quality of life, and citizen access to
services.
Since the BMACs opening, cloud development community membership has
grown from 500 to 1,500, with 100-220 simultaneous users of the platform. The
Center held its first Mobile App Contest and received 115 apps or application
development ideas. Prizes totaling 26 million KRW (U.S. $23,686) were awarded for
14 new apps. In the first year of operation, 840 people registered for professional
development courses and seven new businesses registered as start-ups. As of
February 2012, BMAC has trained 2,350 people, and 3,150 individuals registered as
professional mobile application developers in the BMAC talent pool.
Eventually, the cloud platform is intended to deliver services to citizens through
kiosks, citywide digital interactive displays, home-based access, and mobile access.
With a shared development platform, developers can work with the city to cocreate Smart City services. The Busan Metropolitan Government plans to establish
a public-private collaboration company to create, deliver, and manage innovative
urban services. In addition, the city is encouraging a greener city environment
through increased citizen engagement.

Page 9 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

As these solutions are

implemented, Cisco and the
city of Nice are assessing
how captured data can be
treated to make information
context-specific and useful
across different services.

Nice, France: IoE Smart City Pilot

Cisco is partnering with the city of Nice, France and several local and other industry
partners to build a Smart City solution to further advance the potential impacts of
IoE for cities. The projects main objectives are to test and validate an IP-enabled
technology architecture and economic model, as well as to determine the social
benefits of IoE. The project is based on a shared platform designed to be more
flexible, granular, and scalable than early attempts at developing urban operating
systems. The shared platform is intended to make it easier to establish the new
connections that are critical for Nice to become a Smart City.
In addition, the project will serve as a catalyst for combining key discoveries from
this and other Smart City initiatives. The intent is to share what Nice has learned with
other aspiring cities so they can create their own Smart City framework.
The project includes four city services that can rapidly demonstrate the benefits and
value of IoE for both residents and city leadership. These services include: 1) smart
circulation, 2) smart lighting, 3) smart waste management, and 4) smart environment
monitoring.
As these solutions are implemented, Cisco and the city of Nice are assessing how
captured data can be treated to make information context-specific and useful across
different services. For instance, can data captured by sensors for traffic patterns
serve purposes beyond smart parking? How can this information also help optimize
waste collection and environmental monitoring? The implications of data crossfertilization and cross-collaboration go beyond technological feasibility because
they also impact the decisions of city managers, cross-departmental collaboration,
and back-office operations.

Key Considerations for the IoE-enabled City

City Operating Models for IoE
City leaders face several challenges that impact their operating models for the
Internet of Everything.
New operating models. Faced with unprecedented budget issues, city leaders
are creating more effective and efficient operating models by moving away
from top-down, centralized management systems and breaking down siloed
service functions and departments. To be helpful, Smart City solutions must
not only deliver the promised benefits, but also enable leaders to mange city
expenses more effectively. Given this backdrop, many Smart City schemes are
focused on offering pay per use as opposed to pay to see solutions. These
can also involve software-as-a-service (SaaS) models and step-by-step buildouts that allow for an incremental return on investment (ROI).
From a procurement side, city governments are starting to move from a
centralized, products-and-services procurement model to a decision as a
service model. For example, the city of Barcelona, Cisco, and a number of
partners are embarking on a program intended to develop a light as a
Page 10 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

By combining public
and private data, city
governments can carve
actionable insights that
generate value for the city
government, or directly for
citizens.

service operating model utilizing public lighting infrastructures. In this model,

development of the technology infrastructure and management of the data are
out-tasked to a public-private partnership whose objective is to leverage the
data and provide actionable insights related not only to the performance of the
networks, but also to the level of interactions between the networks and the
environment around them. Lighting is activated only when an event occurs in
the area, with the decision taken locally at the network level, rather than at the
data center. This represents a distributed operating model, as opposed to a
centralized, command-and-control approach.
IoE deployment plans. City leaders are exploring new strategies that will allow
them to anticipate and adapt more quickly to changes that impact their cities.
With this in mind, cities should provide a coherent deployment plan to ensure
synergies and cross-functionalities that optimize the number of sensors and
services provided. This will allow them to prevent redundancies, rationalize
security and privacy concerns, and manage undue sensor proliferation. Of
critical importance will be the development of smart regulations, stimulating
deployment of connected devices at the public and private levels, as well as
integration among disparate data sets coming from them.
Data ownership by the city. While infrastructure integration of different
organizations at the network and infrastructure levels (within the public
sector and between the public and private sectors) has proven to be virtually
impossible, integration at the data level is happening. By combining public
and private data, city governments can carve actionable insights that generate
value for the city government, or directly for citizens. As the debate over
governance and ethical exploitation of data receives increasing public attention,
city leaders are looking for ways to preserve their cities assets (data), as well
as those of their constituents, while also integrating these data sources with
others coming from the private sector. Cities are addressing aspects of data
management, including intellectual property rights, proper data handling, and
physical storage and distribution requirements.
New governance models. Smart Cities create an environment that disturbs
traditional decision-making processes and project ownership. It creates urgency
for leaders to establish new rules of the game. Collaborative design of multistakeholder ownership and processes calls for new governance and business
models, which are essential to aligning all city services. This cross-functional
and inter-organizational collaboration is necessary to unify the increasingly
complex ecosystem required to provision end-to-end solutions for Smart Cities.
Leading cities have set up dedicated business-relation functions and specialpurpose organizations to act in an orchestration role, to look into the various
interests of different service sections, and to facilitate dialogue and crossfertilization of ideas.
Societal challenges. Concerns over societal challenges (pollution, CO2
footprint, well-being) are just as important as economic and social impact. The
project design, therefore, is supported by a strong, multidimensional economic
hypothesis aimed at validating quantitative and qualitative gains by project
partners.

Page 11 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

More important, the

infrastructure needs to
process the data, capture
the insights, and take a
decision at the edge of the
network without the need
to transport a large amount
of data to a data center
and then bring the decision
back to the edge.

IoE Technology Architecture for Cities

IoE technical architectures for cities require seamless integration of sensors in a
mutualized communication environment. Traditionally, a specific network is deployed
around a given application, such as streetlight management, video surveillance, or
environmental monitoring. While separate networks provide a natural separation of
domains, typically they are not optimized (costs, security, availability), bringing about
information silos. In addition, interaction between the sensor and devices in each
network requires specific integration.
Cities are exploring the deployment of horizontal multiservice infrastructures that
will host all of the citys systems. Such approaches are designed to facilitate easy,
seamless integration of new applications that typically require installation of end
devices and relevant software stacks. The objectives are to ensure that future
services can be added at minimal cost and disruption to the existing network
architecture. The efficacy of the technical architecture will be determined by how
well it:
Interconnects people, machines, and sensors throughout the city (indoor and
outdoor)
Securely collects real-time and context-aware data from multiple sources
Stores data from devices, people, and applications so that it can scale to
accommodate growing volume
Organizes data by using semantic links to identify and send it to relevant users
according to individual access rights
Analyzes data by interpreting and correlating patterns of use, such as sales
trends, that may allow for monetization opportunities in the future. More
important, the technical architecture should improve predictive modeling by
allowing the city to analyze historical data.
Shares information with end users and publishes linked data based on
semantics. End users include both city agents who will use specific monitoring
applications, and city residents who will receive access to the information either
on their smartphones or on multimedia kiosks.
Enables an open ecosystem for innovation to develop new services that appeal
to both citizens and city leaders. Platforms need to be open to local start-ups
and businesses (either for free or for a fee), and local businesses can develop
their own offer in agreement with the city charter of good behavior.
To achieve these goals, the technology architecture must be capable of
handling millions of devices and sensors; thousands of servers; multidimensional
transmission, processing, and streaming of Big Data; and more. More important, the
infrastructure needs to process the data, capture the insights, and take a decision
at the edge of the network without the need to transport a large amount of data
to a data center and then bring the decision back to the edge. The sheer scale and
complexity of the architecture will make it difficult to predict the speed, reliability,
quality, and security of service delivery.

Page 12 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

The IoE-friendly architecture

encapsulates several unique
characteristics that make
it much more extensible,
resilient, and robust than
operating systems typically
used by cities over the past
five years or so.

The first response to addressing these challenges could simply be to add more
processing power to the citys existing technology infrastructure. To achieve
the desired attributes described earlier, however, an entirely new architecture
is required. For example, the city of Nices smart parking pilot proposes an
architecture with four distinct layers (see Figure 4):
Layer 1: Sensors and networked devices with mesh technologies, which
promote more efficient integration of emerging context-aware sensors and
devices, ultimately improving the citys resilience.
Layer 2: Data capture, processing, storage, and analytics at distributed points
across the city. This reduces architectural complexity and ensures extensibility.
In addition, a distributed architecture boosts scalability. Most important, it
increases responsiveness to real-time and context-critical data, which, when
processed and analyzed, enables information intelligence.
Layer 3: Central data collection, including computing, storage, and analytics,
combined with integrated and open-standard application programming
interfaces (APIs) for building on open-data readiness (as determined by the
city).
Layer 4: New and innovative applications and services for both city managers
and residents.
Figure 4.

Technology Architecture for the City of Nice Includes Four Layers.

Source: Cisco Consulting Services, 2013

The IoE-friendly architecture encapsulates several unique characteristics that make

it much more extensible, resilient, and robust than operating systems typically used
by cities over the past five years or so. The technology architecture is designed to
deliver the following benefits:
Simplicity and availability. End-to-end IP, bandwidth, and frequency
optimization, combined with mesh technologies and resiliency, guarantee high
service quality and relatively low maintenance.

Page 13 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

The power of public-private

partnerships cannot be
overstated. With the vast
range of companies and
nonprofit organizations
whose expertise lies in
connectivity, intelligence,
and technology, we have a
rich pool of resources for
identifying and deploying
the best solutions. We
are successfully working
together to deliver superior
services with far greater
efficiency.
Ger Baron
Program and Cluster Manager
Amsterdam Innovation Motor

Security. IP security mechanisms ensure a highly robust and resilient system. In

addition, the peer-to-peer model separates each component from the others
and prevents isolated failures from jeopardizing the entire system.
Interoperability. Standards-based solutions make it easy for the city to involve
new partners and add services not necessarily envisioned at the beginning of
the proof of concept.
Multiservice. The solution places equal importance on data, voice, video, and
sensors. In addition, the architecture is service- and end-usage-agnostic in the
sense that diverse business applications can be hosted and treated in the same
environment, regardless of the source and nature of the data.
Technological scalability. By using IPv6 and distributed data processing, the
architecture is designed to handle the large number of connected things that
a Smart City requires.
Business scalability. The solution offers pay-per-use opportunities to
enhance granularity so that it can be scaled as budgets allow.
Manageability. The end-to-end nature of the solution makes maintenance
easier by enabling greater visibility into the infrastructure.
Extensibility. New applications require only endpoints and application
programming interfaces (APIs) to integrate with the existing infrastructure.
Flexibility. The architecture allows city managers and citizens to utilize the same
services and information for their specific needs.

Collaborative and Dynamic Ecosystem for IoE

No single company or public agency is capable of delivering an end-to-end, plugand-play Smart City solution. To address the complexity involved, city programs are
enabled by a collaborative and dynamic multi-stakeholder ecosystem.
This perspective is explored in the Smart City Framework17 thought leadership
previously published by Cisco (see Figure 5).
Typically, these ecosystems consist of a core group of partners that can be
extended to include other relevant expertise providers, enabling the architecture to
address a broad range of demands for city services. Further, the ecosystems are
then driven by a common purpose that unites the various stakeholders.
As new services are added, sub-networks of other alliances and collaborators
could potentially come together to develop or achieve a context-specific Smart City
application and evolve into other partnership organizations, as needed.
The advantages of a collaborative and dynamic ecosystem include:
Ability to provide end-to-end solutions to city decision makers
Mutual and recurring solution improvement to optimize city operations and
spending

Page 14 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

Within a Smart City context,

however, infrastructure will
become a dynamic platform
enabling continuous
innovation. It thus needs
to be looked at from a
different point of view: total
value of ownership (TVO).

Mutual and recurring solution improvement to optimize city operations and

spending
Improved management and roadmap planning, as well as seamless technology
integration among partners
Ability for cities to respond flexibly to new needs and service complexities with
a business model that focuses on OpEx rather than CapEx
Figure 5.

Stakeholder Roles and Responsibilities.

Source: Cisco Consulting Services, 2012

Some of the most successful ecosystem thinking by cities has been enabled
by Special Purpose Vehicle agencies, which fulfill the broad purpose of being
mediating entities between private companies and public agencies. Groups such
as Amsterdam Innovation Motor18 in Amsterdam, and Forum Virium19 in Helsinki,
Finland, have been at the forefront of new business models, living lab pilots, and
innovative projects and thinking toward delivering the vision for the Smart City.

Consumption Economics Trends in Public Tendering

In order to move away from traditional tendering, which has focused on initial cost
(and, as a result, on inexpensive but not necessarily sustainable solutions), cities are
now considering the entire lifetime cost of infrastructure, or total cost of ownership
(TCO). The notion of TCO takes into account all costs linked to new infrastructure:
from the initial investment (CapEx) to the operating costs (OpEx), such as costs of
maintenance, energy, disposal, and so forth.
Within a Smart City context, however, infrastructure will become a dynamic platform
enabling continuous innovation. It thus needs to be looked at from a different
point of view: total value of ownership (TVO). Only then does the case in favor of
sustainable, livable infrastructure become clear. Developing infrastructure with a
TVO-based approach includes:
Page 15 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

Cities across the world

are starting to explore the
utility of latent data that is
emerging from a connected
society.

Linking the project to the citys vision in terms of livability, economic growth, and
sustainability
Defining the connected public infrastructure as a network of networks and a
platform for service innovation
Working actively with stakeholders such as city officials, retailers, shop owners,
police, telephone operators, ISPs, and, of course, citizens to create meaningful
use cases
Investing operational cost savings in the platform to enable new functionalities
Measuring the total value generated year-over-year in terms of savings and
revenues, jobs created, and livability improvements

Big Data and Analytics

Cities explorations on becoming Smart Cities, and most recently the focus on the
Internet of Things (IoT) and the wider IoE framing, have gone through an evolutionary
discovery process. The city initiatives highlighted in this paper show how the
discussion progressed in a number of stages:
Stage 1: Networking infrastructures
Stage 2: Transforming public services
Stage 3: Mobility and personal interconnections
Stage 4: Growth in data: from opening up public information (open data) to
real-time data flows from sensors, connected devices, and applications
Stage 5: Making use of data and analytics
Today, Big Data is characterized by high volume, high variety, velocity, and value.
This evolving landscape makes one thing clear: the rules of networking have
changed:
Networking is no longer about data transport; it is about intelligence derived
from network data to achieve better business and policy outcomes.
A distributed architecture is emerging, where data can be analyzed in real time
at the edge of the network, as well as in batch-mode in the cloud.
High-performance computing capability is increasingly embedded in the
network to filter, screen, and analyze data in motion.
An increasing range of new business insights, operational and policy
decision making, revenue services for the public and private sectors, and city
management solutions is based on data analytics derived from the network.
Cities across the world are starting to explore the utility of latent data that is
emerging from a connected society. Open public information policies and the
instrumentation of objects are providing an exponentially growing repository of data,
at micro and meta levels.

Page 16 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

Developing ways to access

the latent intelligence being
created in the network,
directly at its edges, brings
information closer to
communities, and promotes
better citizen engagement
and participation.

The task is to find the effective applications of data analytics, with the potential to
transform business, government, and society. For example, city governments have
relied on static demographic data or expensive, custom on-site surveys to visualize
data for patterns in vehicle and pedestrian traffic. Advanced analytics, computing,
and networking technology, however, transform this capability by automating pattern
visualization to derive insights from Wi-Fi and/or cellular network data in real time to
help local governments improve services and manage cities better. City managers
can view a near-real-time profile of car and foot traffic of a relevant population
to make better and dynamic decisions on highway toll pricing and parking space
management.
Cisco has a long track record in working with cities on their journey across the
stages outlined here. At an analytical level, geo-mapping data analysis platforms,
including applications of data for the retail, financial services, and real estate
industries, are contributing to a rich understanding and expertise, which is being
applied and developed further with some of the leading innovative city projects.
Developing ways to access the latent intelligence being created in the network,
directly at its edges, brings information closer to communities, and promotes better
citizen engagement and participation.

Social Engagement
As more collaborative and distributed dynamics take shape at every level of a
citys journey20 to become smarter, engagement with citizens using tested
services becomes critical. A Smart City cannot be founded solely on the vision of
technology companies or the ambitious aspirations of the citys elected officials,
no matter how well-intentioned they may be. A true partnership with different
constituents and community groups gets people involved, engaged, and excited to
contribute over the long term.21 A new report, We the City, by Cisco Consulting
Services and the city of Sydney,22 highlights how crowd-sourced and diverse
ideas and experiences are the best ways to shape and prioritize where smart
ideas will gain most traction. The Sydney report provides initial thinking and makes
recommendations from the committee, with input from colleagues in government
and the private sector.
In essence the report recommends the promotion of competitions, active
communities of interest, fellowships of leading thinkers to work across the city,
support of cross-city knowledge networks, and a dedicated function in the city that
facilitates cross-community and cross-industry engagements.
These recommendations are universal to cities globally, and are familiar
characteristics of the most successful, dynamic, and innovative cities with which
Cisco has worked around the world. While this paper highlights merely a few of
these cities, there is a dynamic local and global city exchange network connecting
cities across the world.

Page 17 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

Cities investing in the

long-term efficiency of
their infrastructure aim to
make their infrastructure
intelligent, with shared
operations.

Design Is Central
Much has been written and debated about the rise of the design thinking ethic
in public policy and service design. Its possible the idea is suffering from a certain
amount of over-hype and has even become something of a clich. Thats a shame
because some of the core instincts of design, which futurist and organizational
writer Ross Dawson23 has described as combining function and aesthetics within
constraints, will be critical to the work and impact of the Internet of Everything,
particularly in public service provision locally and nationally.
Being comfortable with launch to learn basically getting an idea to a rough
prototypical stage and then releasing it for public comment and feedback and
the need to ground policy and service design in the needs and circumstances of
users, not of policymakers, can be difficult. But these kinds of radical but pragmatic
instincts of designers, whose overriding ambition is to create solutions that work for
people in context, are going to feature more strongly in the emerging shape of the
Internet of Everything economy.
Design considerations include the operating model, technology architecture,
collaborative and dynamic ecosystem, and social engagement. Ciscos engagement
with the cities of Amsterdam and Chicago are examples of how design thinking
is helping inform the development of Smart City projects. This includes usability
studies, community engagement, and bringing many perspectives to determine how
technology can be applied to the demands and requirements of all who are sought
to engage.
Such a two-way process of participation is fundamental to realizing the potentials
of urban smart solutions. As Usman Haque, architect and designer of urban sensor
applications, states, enabling the granularity of participation24 is vital.

Next Steps for the IoE-enabled City

Efficient IoE infrastructures for cities require two elements:
1. Smart, innovative solutions that break away from traditional, energy-intensive,
waste-generating approaches
2. Solutions that eliminate silos of information within a city, allowing for more
efficient and open sharing and utilization of information and resources
Cities investing in the long-term efficiency of their infrastructure aim to make their
infrastructure intelligent, with shared operations. These cities not only see their
energy usage and carbon footprint diminish they also enhance their livability as
safe, vibrant cities, thus attracting both citizens and tourists. How is this achieved?
By providing a mix of enabling devices and intelligent data-treatment tools, which, in
turn, trigger smarter decisions in infrastructure operation and management:
Data-collection devices. Sensors and metering systems enable the city to
generate information about its own infrastructure usage and condition.

Page 18 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

In order to realize
the full potential of
Smart+Connected
Communities in the era of
the Internet of Everything,
a strong public-private
partnership approach is
necessary, beyond silos of
existing city infrastructure
providers.

Networks. Different types of networks connect these devices with a central

data-collection unit. Once the information is generated, the network allows it to
be transported to a server. The communication media itself can be fairly diverse
(wireless Internet connection, radio frequency, GPRS, 4G/LTE, power line
communication, and IP).
Intelligence and analytics. When information from different places on the
network has been collected at a central location, it needs to be processed
to define whether theres a need for optimization of the way the network
is operated. That definition is increasingly being created at the edge of the
network, where it is needed, in real time, through a distributed, intelligent
network approach.
Intervention. The infrastructure will require an intervention, such as dynamic
adjustments in, for example, zonal street lighting, traffic signaling, or parking
controls, communicating critical and location-specific information. All this data
will be integrated in open networks so it can be combined in intelligent ways to
provide new services and benefits for cities and their citizens.
Platforms for interaction. This infrastructure platform could be used by local
SMEs and software developers worldwide, who are constant creators of new,
interesting, and relevant applications.
Their innovations can be based on the data generated by the network of interconnected sensors, cameras, and other intelligent assets in the public space,
enabling new ways of generating revenue by associating data from businesses and
infrastructure. The opportunities become endless.
Clearly, as systems become more connected and interoperable, the public sector
will have to take an asset bundling approach with partners, eliminating previously
proprietary silos. City governments will need to approach the Smart Connected
City differently, with an understanding of what is core and what is context, while
maintaining centralized control and visibility of critical functions.
In order to realize the full potential of Smart+Connected Communities in the era of
the Internet of Everything, a strong public-private partnership approach is necessary,
beyond the silos of existing city infrastructure providers. Asset-bundling and new
partnership models will enable the creation of a connected public infrastructure that
delivers value to both city administrators and citizens, enhancing the livability of a
city.
We invite cities, innovators, and business leaders in public services and infrastructure (such as utilities, transportation, traffic, and safety) to join our mission
to improve livability in cities and communities by utilizing connected infrastructure
platforms, applications, and processes.

Page 19 2013 Cisco and/or its affiliates. All rights reserved.

Point of View

Endnotes
1. UN State of World Cities report, 2012/13, http://www.unhabitat.org/pmss/
listItemDetails.aspx?publicationID=3387
2. http://timstonor.wordpress.com/2013/06/06/smart-cities-why-what-howhow/
3. Source: Ray Kurzweil, May 2, 2003.
4. http://www.cisco.com/web/about/ac79/innov/IoE.html
5. http://newsroom.cisco.com/press-release-content?type=webcontent&articl
eId=1209280
6. IDC, 2013, http://www.idc-gi.com/getdoc.jsp?containerId=prUS24087613
7. http://www.wired.com/wiredscience/2012/10/big-data-is-transforminghealthcare/
8. http://www.theaustralian.com.au/australian-it/tracking-technology-ishelping-farmers-take-stock/story-e6frgakx-1226656458095
9. http://www.cisco.com/web/strategy/docs/scc/cisco_amsterdam_cs.pdf
10. The Time Is Right for Connected Public Lighting Within Cities, Cisco
Consulting Services and Philips, 2012, http://www.cisco.com/web/about/
ac79/docs/ps/motm/Connected-Public-Lighting_Philips_Cisco.pdf
11. The LED Lighting Revolution, Philips, May 2012.
12. Source: Philips Lighting, 2012.
13. http://newsroom.cisco.com/press-release-content?articleId=678356
14. http://www.cityofchicago.org/city/en/depts/mayor/press_room/
press_releases/2013/september_2013/mayor_rahm_
emanuelattendslaunchofnewciscostemlabatmicheleclarkhi.html
15. http://www.social-life.co/media/uploads/tatv_workshop_july_2013_
summary.pdf
16. Smart+Connected City Services, Cisco Consulting Services, 2011, http://
www.cisco.com/web/about/ac79/docs/ps/Busan-Green-u-City_IBSG.pdf
17. Smart City Framework, Cisco Consulting Services, 2012, http://www.
cisco.com/web/about/ac79/docs/ps/motm/Smart-City-Framework.pdf
18. http://www.aimsterdam.nl/english
19. http://www.forumvirium.fi/en
20. Participation, Collaboration, and Community, Cisco Consutling Services,
2011, http://www.cisco.com/web/about/ac79/docs/ps/ParticipationCollaboration-and-Community.pdf
21. http://urbantimes.co/section/social-life-of-cities/
22. http://www.sydney.org.au/think-sydney-blog&post=cfs-issues-paper-2-wethecity-collaborating-to-compete-in-the-digital-era&id=A6CCDA37F66F
F1D8A79F058508AB4E57
23. http://rossdawsonblog.com/weblog/archives/2013/07/how-soaringexpectations-of-beauty-are-shaping-technology-and-society.html
24. http://www.haque.co.uk/papers/notesonthedesignofparticipatorysystems_
eng.pdf; http://vimeo.com/42748883
Page 20 2013 Cisco and/or its affiliates. All rights reserved.

Point of View